The use of the effective age in the calculation of the cadastral value as a factor in the sustainable development of the region

Abstract

In the Russian Federation taxes are calculated based on the cadastral value of immovable property, formed on market information, including information related to the economic characteristics of using of a real estate object. This creates conditions for the rational and efficient use of land plots and capital construction projects (capital construction object). However, it is worth noting that today these conditions are poorly implemented due to biased cost indicators forming the base real estate taxation. The purpose of the study is to test methodological tools for calculating the cadastral value of a capital construction object, taking into account adjusted effective age in the context of sustainable development of the region. When performing repair and restoration work, physical wear is compensated only partially. In this regard, the cost of a constructed building and the cost of a building that was overhauled or reconstructed in the same year are not equivalent to each other. The proposed by the authors corrected effective age allows us to reflect the content of difference between the year of construction and the year of reconstruction or overhaul as a whole. This makes it possible to resolve the issue of using such a pricing factor as a date of overhaul (reconstruction). At the moment, regions do not have a unified position in a practical approach to this issue. To demonstrate the applicability of methodological tools, the assessment of cadastral value was carried out within the framework of the cost approach. The sample used includes 132 objects, residential and non-residential buildings located on the territory of the city of Tomsk, in respect of which reconstruction was carried out. The results showed that the calculation models of physical depreciation of a building based on corrected effective age become more flexible because partial compensation of physical depreciation is taken into account during the renovation. In total, these measures lead to the accuracy increase while calculating the cadastral value.